926.29
Delayed price agreement.

(A)
A delayed price
agreement is an executory contract that shall be in such a form and contain
such terms as the director of agriculture shall adopt by rule under Chapter
119. of the Revised Code. The agreement shall be executed by and between the
licensed handler and the depositor or by their authorized representatives not
later than fifteen days after the first delivery of an agricultural commodity
is received for delayed pricing under the agreement. The handler shall maintain
a file of executed agreements that are available for inspection at any
reasonable time by the director or the director's designated representative.
The handler also shall keep records and ledgers the director considers
necessary to document the handler's obligation to the depositor under a delayed
price agreement. The handler also shall provide reports, forms, and other
evidence the director shall adopt by rule to document the storage and marketing
of commodities under the delayed price agreement.

(B)
Subject to the lien that attaches under
section 926.021 of the Revised Code and
except as otherwise provided in division (C) of this section, a licensed
handler who purchases any agricultural commodity under a delayed price
agreement at all times shall maintain the commodity, rights in the commodity,
proceeds from the sale of the commodity, or a combination of the commodity,
rights, and proceeds equal to at least ninety per cent of the value of the
handler's obligation for all commodities that the handler has purchased that
are not priced under delayed price agreements. The obligation shall be secured
or represented by one or more of the following:

(1)
Maintenance of the commodity in storage
in the handler's warehouse;

(2)
Rights in commodities as evidenced by a receipt or ticket for storage of the
commodities under a bailment agreement in another warehouse approved by the
director;

(3)
Proceeds from the
sale of commodities as evidenced or represented by one or more of the
following:

(a)
Cash on hand or held on
account in a state or federally licensed financial institution or a lending
agency of the farm credit administration;

(b)
Short-term investments held in time
accounts with state or federally licensed financial institutions or a lending
agency of the farm credit administration;

(d)
Commodities sold and shipped
by the handler under delayed price agreements that have not been priced less
any payments or advances that have been received by the handler;

(e)
Such other evidence of unencumbered
assets as may be acceptable to the director, including an irrevocable letter of
credit.

(C)
In addition to the lien that attaches under section
926.021 of the Revised Code, a
depositor who sells an agricultural commodity to a licensed handler under a
delayed price agreement, upon giving notice to the handler either at or prior
to the time of delivery, may demand as security for payment for the commodity
an amount that, at the time of delivery, is equal to one hundred per cent of
the national loan rate value of the commodity under the United States
department of agriculture price support program, or seventy-five per cent of
the average price being paid for the commodity in the state on the date of
demand as published by the market news service of the department of
agriculture, whichever is less. The handler shall satisfy a demand for security
on a commodity sold under a delayed price agreement at the handler's option by
one of the following:

(1)
Payment to the
depositor by cash or draft on the account of the handler;

(2)
Causing an irrevocable letter of credit
to be issued to the depositor by a financial institution designated by the
handler securing payment in the specified amount. The letter of credit shall be
subject to Chapter 1305. of the Revised Code and rules adopted by the director
pursuant to Chapter 119. of the Revised Code.